Posted on: 15th Feb, 2006 10:04am
Daily Simple Interest loan calculation involves a method by which the interest on a mortgage loan is calculated on a daily basis. The loan balance is reduced on the day when the payment is reduced rather than on the day when payment is due.
Under the Daily Simple Interest formulae, the daily interest rate is given by:
Daily Rate= Annual Rate/365
Amount of interest payable each month = Number of days since last payment * principal outstanding balance * Interest Rate factor
Let's take an example where outstanding principal balance is $10000. You've sent in a payment of $170 around 30 days after your previous month's payment. Let's say the interest rate is 8.5% (the interest rate factor is .00022585)
As per the above formulae,
Interest payable each month = 30 * 10000 * .00022585 = $67.7555
Daily Interest = Daily rate * loan balance
Under the Daily Simple Interest formulae, the daily interest rate is given by:
Daily Rate= Annual Rate/365
Amount of interest payable each month = Number of days since last payment * principal outstanding balance * Interest Rate factor
Let's take an example where outstanding principal balance is $10000. You've sent in a payment of $170 around 30 days after your previous month's payment. Let's say the interest rate is 8.5% (the interest rate factor is .00022585)
As per the above formulae,
Interest payable each month = 30 * 10000 * .00022585 = $67.7555
Daily Interest = Daily rate * loan balance
How are you billed for a daily loan that charges daily simple interest if the loan is tied into an index that changes daily. How would you know what your actual payment would be by the due date? In trying to pay the interest early (putting more to principal),.
How this interest rate factor is calculated
If your result goes beyond the precision of a penny, what happens to the rest of the numbers?
Your query is not clear to me, MangoMan... Explain it in details, please.
If I am due for 4/1 and if your monthly payment is 400.00, and I make 1200.00 payment in one month, what would be my next due date for a daily interest loan?
Hi Guest,
You need to contact your lender in order to know the next due date for your daily interest loan.
Thanks
You need to contact your lender in order to know the next due date for your daily interest loan.
Thanks
I was told that conventional loans are calculated with 360 and government loans with 365.
What is correct?
Thank you.
What is correct?
Thank you.
Contact your local lenders and they will better guide you regarding this matter.
Can you please tell me how to work out the years saved and interest saved by paying a $268872.00 home loan @ 8.25% over 27 yrs daily payments of $70 instead of weekly payments of $483...??
Better to contact your lender. He will guide you in doing the calculations!
If you have a daily interest loan would you have the typical 30 day pay window in the mortgage contarct? If so would this not be confusing?
Well, I don't think it will be confusing!! Why do you say it will be confusing??
how do you calculate the interest rate factor? In your example above it states the interest rate is 8.5% then in () it says interest rate factor is .00022585
Hi JFK!
Welcome to forums!
Check out the given page in order to find out how to calculate the interest rate factor: "http://budgeting.thenest.com/calculate-interest-rate-factor-4462.html".
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Check out the given page in order to find out how to calculate the interest rate factor: "http://budgeting.thenest.com/calculate-interest-rate-factor-4462.html".
Feel free to ask if you've further queries.
Sussane
Short method formula of S I
Hi Guest!
Welcome to forums!
You can check out the given calculator in order to calculate simple interest: "http://www.webmath.com/simpinterest.html"
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can check out the given calculator in order to calculate simple interest: "http://www.webmath.com/simpinterest.html"
Feel free to ask if you've further queries.
Sussane